1. No category

Why Jurisdiction and Uranium Deposit
Quality are Essential Considerations for
Exploration and Mining of Uranium
David R. Miller
President and CEO
DECLAN RESOURCES INC.
June 24, 2014
International Symposium on Uranium Raw
Material for the Nuclear Fuel Cycle:
Exploration, Mining, Production, Supply and
Demand, Economics and Environmental Issues
(URAM-2014)
1
Why Jurisdiction and Uranium Deposit Quality are
Essential Considerations for Exploration and Mining of
Uranium
OUTLINE
1.
Jurisdiction Issues: Is the Government with you or against
you?
I. National Government, State Government, Local
Government:
a) Regulatory Agencies
b) Legal System
2.
Deposit Quality: Grade is king? Brief review of historical and current
production.
I.
High grade versus low grade: Why mine low grade?
3.
Comparison of top producing countries attributes, be they uranium
deposit quality (grade, size) versus government involvement (government
2
helpful or hurtful).
What is important in Exploration, Development
and Mining of Uranium around the world?
• Jurisdiction: Is the government with you or
against you?
• Uranium Deposit Type and Grade of Deposit:
Grade does matter!
3
JURISDICTION
Is the government with you or against you?
What is important?
• Government allows uranium mining?
• Government does not allow uranium mining?
Uranium mining banned:
1.
2.
3.
4.
Virginia, US.
British Columbia, CA.
Greenland, Removed ban last year!
Queensland, Removed ban 2 years ago.
4
JURISDICTION
Is the government with you or against you?
Government does allow uranium mining.
Some governments are encouraging uranium
mining. Permits are fast and efficient.
Examples:
Kazakhstan
Namibia
5
JURISDICTION
Secondary considerations:
1. Permitting
•
•
Government controlled?
Government regulated?
2. Delays (US- Env. Lawsuits)
•
•
Time Value of Money
Missed Market Opportunity
Discussion: Some jurisdictions may not outright ban uranium mining but can
make it onerous and costly to pursue. Sometimes governments change the
terms of mining after discovery or even development of the mine.
Examples: New Mexico, US. Niger
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7
8
http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research9
news/research/publications/mining-survey-2013.pdf
Fraser Institute: Ranking of Countries: 2013
BEST
Sweden
Zambia
Wyoming
W. Australia
Argentina: Jujuy
India
S. Africa
Labrador
S. Australia
Saskatchewan
NT Australia
Niger
France
Argentina:San Cruz
Kazakhstan
Worst
Namibia
10
JURISDICTION
Who Controls The Uranium?
"The ‘operator’ should not start … operations in a
district which is oppressed by a tyrant,
but should carefully consider if the overlord there be
friendly or inimical."
-Georgious Agricola, 1556, De Re Metallica
inimical - “having the disposition of an enemy”
11
OUTLINE
1.
Jurisdiction Issues: Is the Government with you or against you?
I. National Government, State Government, Local Government:
a)
Regulatory Agencies
b)
Legal System
2.
Deposit Quality: Grade is king? Brief review of historical
and current production.
I. High grade versus low grade: Why mine low grade?
3.
Comparison of top producing countries attributes, be they uranium
deposit quality (grade, size) versus government involvement
(government helpful or hurtful).
12
URANIUM DEPOSIT TYPES
The International Atomic Energy Agency assigns the uranium deposits according
to their geological settings to 15 main categories of deposit types, arranged
according to their approximate economic significance [IAEA2004]:
• Unconformity-related
deposits
• Sandstone deposits
• Quartz-pebble conglomerate
deposits
• Vein deposits
• Breccia complex deposits
• Intrusive deposits
• Phosphorite deposits
• Collapse breccia pipe deposits
• Volcanic deposits
• Surficial deposits
• Metasomatite deposits
• Metamorphic deposits
• Lignite
• Black shale deposits
• Other types of deposits
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2012 World Uranium Production
By Deposit Geology
5%
4%
5%
8%
56%
21%
Sandstone
Unconformity
Evaporite
Hem-Breccia
Vocanic
Other
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http://www.world-nuclear.org/info/Nuclear-Fuel-Cycle/Mining-of-Uranium/WorldUranium-Mining-Production/
WORLD CUMULATIVE URANIUM PRODUCTION
500,000
450,000
400,000
TONNES U
Countries with production > 5,000 tonnes U
350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
http://www.oecd-nea.org/ndd/pubs/2012/7059-uranium-2011.pdf
15
WORLD CUMULATIVE URANIUM PRODUCTION
500,000
450,000
400,000
TONNES U
Countries with production > 75,000 tonnes U
350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
http://www.oecd-nea.org/ndd/pubs/2012/7059-uranium-2011.pdf
16
World Cumulative Uranium Production
By Deposit Geology
29%
29%
Sandstone
Unconformity
Evaporite
Hem-Breccia
10%
19%
7%
5%
Vocanic
QTZ-Pebb
Other
1%
17
2012 versus World Cumulative
Uranium Production
By Deposit Geology
2012
Cumulative
18
URANIUM RESOURCES
Reasonably Assured Resources
Tonnes U
< $40/kg
Canada Kazakhstan Total
US
Unconformity
-
Sandstone
Hem. Breccia
Quartz Pebble
Vein
Other
237,927
0
0
0
0
0
0
0
0
0
0
US
237,927 Unconformity
19,177
0
0
0
0
19,177
-
< $80/kg
Canada Kazakhstan Total
Sandstone
Hem. Breccia
Quartz Pebble
Vein
Other
-
292,527
39,064
-
0
0
0
0
-
292,527
278,875
0
0
0
0
317,939
-
7%
48%
Unconformity
Sandstone
93%
52%
KAZ: 40 %
US 12 %
http://www.oecd-nea.org/ndd/pubs/2012/7059-uranium-2011.pdf
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2012 World Uranium Production
Approximate Grade of Deposit Types
12.00%
10.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
0.10%
0.05%
0.05%
0.20%
0.20%
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2012 World Uranium Production
Value of 1 tonne of Ore at $30/pound
$7,000
$6,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
$60
$30
$30
$120
$120
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ATHABASCA PROJECTS
By GRADE
30.00%
25.00%
20.00%
18.5% RJ, 17/6/14)
15.00%
WT Average = 12.97
%U
10.00%
5.00%
0.00%
http://www.world-nuclear.org/info/Country-Profiles/Countries-A-F/Canada--Uranium/
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ATHABASCA PROJECTS
Weighted AV= 12.97
%U
12.97 % U
x
0.07 % U :
This is the average grade of most
other production in the world! “in-situ” “heapleach”.
0.9 % U : This is the average grade of the very
best grades available in the rest of the world.
Examples would be Breccia Pipes (US),
Vein/volcanic deposits in Europe/Asia/Australia.
10x
100x
1000x
2%U:
This is the average grade of the low
grade deposits in the Athabasca Basin.
1x % U :
.
This is the average grade of all
deposits in the Athabasca Basin.
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OUTLINE
1.
Jurisdiction Issues: Is the Government with you or against you?
I. National Government, State Government, Local Government:
a)
Regulatory Agencies
b)
Legal System
2.
Deposit Quality: Grade is king? Brief review of historical and
current production.
I.
High grade versus low grade: Why mine low grade?
3.
Comparison of top producing countries attributes, be
they uranium deposit quality (grade, size) versus
government involvement (government helpful or
hurtful).
24
25
CZECH REP
GERMANY
FRANCE
UNITED STATES
AUSTRALIA
CANADA
NIGER
PERMITTING
UZBEKISTAN
5
4
3
2
1
0
UKRAINE
SOUTH AFRICA
RUSSIA
NAMIBIA
5
4
3
2
1
0
CANADA
AUSTRALIA
KAZAKHSTAN
NAMIBIA
RUSSIA
SOUTH AFRICA
UKRAINE
UZBEKISTAN
UNITED STATES
NIGER
FRANCE
GERMANY
CZECH REP
CZECH REP
GERMANY
FRANCE
NIGER
AUSTRALIA
UNITED STATES
SOUTH AFRICA
CANADA
UZBEKISTAN
UKRAINE
RUSSIA
GOVERNMENT WITH (NOT)
KAZAKHSTAN
CZECH REP
GERMANY
FRANCE
UNITED STATES
AUSTRALIA
CANADA
NIGER
UZBEKISTAN
UKRAINE
DEPOSIT SIZE
SOUTH AFRICA
RUSSIA
5
4
3
2
1
0
NAMIBIA
5
4
3
2
1
0
NAMIBIA
KAZAKHSTAN
FRASER INSTITUTE
KAZAKHSTAN
FRANCE
CZECH REP
GERMANY
UNITED STATES
UZBEKISTAN
UKRAINE
NAMIBIA
NIGER
SOUTH AFRICA
RUSSIA
KAZAKHSTAN
CANADA
AUSTRALIA
UNITED STATES
NAMIBIA
FRANCE
KAZAKHSTAN
RUSSIA
SOUTH AFRICA
UKRAINE
UZBEKISTAN
NIGER
GERMANY
CZECH REP
5
4
3
2
1
0
AUSTRALIA
CANADA
JURISDICTION VERSUS U DEPOSIT ATTRIBUTES
Comparison of 6 POLITICAL AND GEOLOGIC ATTRIBUTES
GRADE
TIME
5
4
3
2
1
0
JURISDICTION VERSUS U DEPOSIT ATTRIBUTES
Comparison of the Three Major World Uranium Producing Areas
5
4.5
4
3.5
3
CANADA
2.5
KAZAKHSTAN
2
AUSTRALIA
1.5
1
0.5
0
FIR
Gov-U
Deposit
Grade
Deposit Size Permitting
Time
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CONCLUSION
JURISDICTION versus GRADE
Grade is King! But government policy can and
does affect the ability to mine.
Government can and does help get projects
into production by:
• Streamlining Permit Process
• Favorable Royalty and Infrastructure Support
• And by default, faster approval allows a better
economic return by hitting peak price and utilizing
the time value of money factor.
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THANK YOU - QUESTIONS
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